TimesSquare Capital Management, an equity investment management company, released its “U.S. Small Cap Growth Strategy” third-quarter 2024 investor letter. A copy of the letter can be downloaded here. In the quarter the fund returned 6.50% (gross) and 6.24% (net), compared to an 8.41% return for the Russell 2000 Growth Index. Global markets performed fairly in the third quarter, with the majority of credit and stock markets reporting returns in the mid- to high single-digit range. Energy costs decreased and economic activity indicators remained steady, but recent increases in Middle East tensions started to reverse that. Smaller or value-oriented stocks in developed economies yielded higher returns in the equity space, whereas emerging markets saw the opposite trend. Beta was one of the most powerful variables in global equities this quarter, following a poor first half of 2024. In addition, please check the fund’s top five holdings to know its best picks in 2024.
TimesSquare Capital U.S. Small Cap Growth Strategy highlighted stocks like Loar Holdings Inc. (NYSE:LOAR) in its Q3 2024 investor letter. Loar Holdings Inc. (NYSE:LOAR) designs, manufactures, and markets aerospace and defense components. The one-month return of Loar Holdings Inc. (NYSE:LOAR) was 3.53%, and its shares gained 25.80% of their value over the last three months. On December 6, 2024, Loar Holdings Inc. (NYSE:LOAR) stock closed at $92.00 per share with a market capitalization of $8.25 billion.
TimesSquare Capital U.S. Small Cap Growth Strategy stated the following regarding Loar Holdings Inc. (NYSE:LOAR) in its Q3 2024 investor letter:
“Many of our Industrials positions provide necessary business-to-business operational services, highly technical components, equipment enabling automation & efficiency improvements, or essential infrastructure services. Providing a 40% lift was Loar Holdings Inc. (NYSE:LOAR), a diversified manufacturer and supplier of niche aerospace and defense components. We first added Loar to the strategy on its IPO in April and continued building the position early this quarter. Later, Loar reported higher-than-anticipated revenues and earnings, then boosted its guidance for the rest of the year. Loar forecasted increased growth for all three of its end-markets: aerospace original equipment, aftermarket, and defense.”
Loar Holdings Inc. (NYSE:LOAR) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 18 hedge fund portfolios held Loar Holdings Inc. (NYSE:LOAR) at the end of the third quarter which was 24 in the previous quarter. While we acknowledge the potential of Loar Holdings Inc. (NYSE:LOAR) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
In another article, we discussed Loar Holdings Inc. (NYSE:LOAR) and shared the list of stocks make up 99% of billionaire Abrams’ portfolio. TimesSquare Capital Management U.S. Small Cap Growth Strategy added Loar Holdings Inc. (NYSE:LOAR) in the previous quarter as part of IPO. In addition, please check out our hedge fund investor letters Q3 2024 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.